Question - Entries into T Accounts and Trial Balance
Leila Durkin, an architect, opened an office on May 1, 2012. During the month, she completed the following transactions connected with her professional corporation, Leila Durkin Architect, P.C.
a. Transferred cash from a personal bank account to an account to be used for the business in exchange for capital stock, $51,200.
b. Paid May rent for office and workroom, $5,100.
c. Purchased used automobile for $33,000, paying $7,700 cash and giving a note payable for the remainder.
d. Purchased office and computer equipment on account, $10,200.
e. Paid cash for supplies, $2,460.
f. Paid cash for annual insurance policies on automobile and equipment, $3,400.
g. Received cash from a client for plans delivered, $12,800.
h. Paid cash for miscellaneous expenses, $1,380.
i. Paid cash to creditors on account, $2,970.
j. Paid installment due on note payable, $410.
k. Received invoice for blueprint service, due in June, $1,700.
l. Recorded fee earned on plans delivered, payment to be received in June, $8,900.
m. Paid salary of assistant, $2,700.
n. Paid gas, oil, and repairs on automobile for May, $670.
Required -
1. Record the above transactions directly into the T accounts. To the left of the amount entered in the accounts, place the appropriate letter to identify the transaction.
2. Determine the balances of the T accounts.
3. Prepare an unadjusted trial balance for Leila Durkin, Architect, as of May 31, 2012. For those boxes in which no entry is required, leave the box blank.
4. Determine the net income or net loss for May.